Leasehold & Freehold Bill – Progress Through UK Parliament
A ban on new leasehold houses and limits on ground rent for new flats are contained in the long-awaited and eagerly awaited Bill. This Bill hopes to make selling quicker and easier.
It is now clear to the UK Government, that the leasehold system is unfair and outdated, this forms part of their long-term plan for housing and it is hoped to deliver significant new rights and protections, limit unfair costs and crack down on exploitation.
Key features of the Bill
The headline content is already known, after it was announced in the King’s Speech on 7 November 2023.
- An increase in the standard lease extension from 90 years (or 50 years in flats) to 990 years
- Greater transparency over service charges by making freeholders or managing agents issue bills in a standardised format that is clearer and easier to challenge
- Making it easier and cheaper for leaseholders to take over the management of their property
- Scrapping the presumption that leaseholders pay their freeholders' legal costs when challenging poor practice
- Banning opaque and excessive buildings insurance commissions for freeholders and managing agents
- Removing the requirement for a new leaseholder to have owned their house or flat for two years before they can extend their lease or buy their freehold
